GOLD is the﻿ money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Tuesday, December 16, 2014

Mish Shedlock: Any Large Drop In Asset Prices Will Destroy Economy

Jason Burack of Wall St for Main St had on 1st time guest, Investment Advisor Representative (IAR) at Sitka Pacific Capital Management and top economic expert and economics blogger, Michael "Mish" Shedlock. http://globaleconomicanalysis.blogspo...
During this 35+ minute interview, Jason asks Mish why hyperinflation has not already occurred in the US?
Mish talks about how the US is not the country creating inflation the fastest with its money supply expansion (China and Japan are) and that on a relative basis the US Dollar has a much stronger economy than Europe, Japan, UK and many emerging markets.
Jason and Mish talk about inflation, deflation, asset price inflation and the race to debase. Mish thinks Japan may be the first to hyperinflate as they have been doing politically supported Keynesian stimulus spending and running enormous government deficits the longest of any developed country.
Mish says there's clearly inflation in the US in food prices and in asset prices all over the globe but that there's other factors like technology and debt destruction offsetting inflation and the potential for hyperinflation at least for now.
Jason and Mish talk about how the preferred goal for monetary and economic policy is financial repression (controlled inflation) for many countries like the US, Japan, UK and EU.
Jason and Mish discuss Keynesian Economics and central planning and how Keynesians like Paul Krugman, Janet Yellen and Ben Bernanke don't count asset price inflation as inflation.
Next, Jason asks Mish about new technology that is coming now or coming soon and if he thinks that is somewhat offsetting inflation or at least slowing increasing inflation down.
Mish thinks that's the case and it's preventing wage growth from happening which fuels inflation.
To wrap up the interview, Jason asks Mish about the precious metals and oil markets and if he thinks there's value there for longer term investors or what other markets he sees value.